... markets there are both Eurodollar deposits and Eurodollar loans, although the loan market was more-or-less dead during the 1980's. All loans and liabilities are generally short-term affairs, with the interest rates charged on loans usually dependant on LIBOR (London InterBank Offered Rate), and are usually set to be floating rates. To show the true rate of growth of the Eurocurrency, we can take a look at the following table. Year US$ billions Year US$ billions 1963 1964 1966 1968 1970 1972 1974 1976 1978 12.4 14.9 26.5 46.4 93.2 149.9 248 341.7 549.6 1980 1982 1984 1986 1988 1990 1992 1994 1995 1011.7 1514.7 2153.2 3221.1 4511.3 6253.8 6197.7 7116.7 8034.1 2 The previous table shows that the gross size of the Eurocurrency market has increased immensely, and solidly, since the early 1960's up until the mid 1990's. In 1963 the gross total value of Eurobank assets was $12.4billion. By the end of 1995 this figure stood at a staggering $8034.1 billion. This gives a 22.5% growth per annum in the Eurodollar market over the space of a 32 year period, truly a huge rise by any standards. The Eurocurrency market ...

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